Fair Debt Collection Practices for Servicemembers Act

Floor Speech

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Ms. JACKSON LEE. Madam Speaker, I rise in strong support of H.R 1491, the ``Fair Debt Collection for Servicemembers Act,'' which addresses abusive debt collection practices affecting members of the military by amending the Fair Debt Collection Practices Act (FDCP A) by adding servicemember-specific provisions to Section 805 (covering prohibited communications in connection with debt collection) and 808 (defining unfair practices that constitute a violation of the Act).

H.R. 1491 specifically prohibits debt collectors from making threats of rank reduction, revocation of security clearance or prosecution under the Uniform Code of Military Justice.

Further, the bill requires the Government Accountability Office to report the impact of this act on military readiness and national security, including the extent covered members with security clearances would be impacted by uncollected debt.

While all Americans are covered by laws barring debt collectors from overly aggressive or deceptive tactics, military members and their families face particular financial challenges requiring extra protections: in service to their country, they relocate frequently, deploy overseas and are a prime target for scammers.

Military members are also more vulnerable to debt collectors in some instances, and debt collectors have taken advantage of this vulnerability by targeting members of the Armed Services through calling their superior officers, threatening reduction in rank and even courts-martial.

This past year has seen a rise in aggressive debt collections due to the impact of COVID-19, according to the Consumer Financial Protection Bureau (``CFPB'').

According to the CFPB, in the past year credit and consumer reporting complaints accounted for more than 58 percent of complaints received by the CFPB, followed by debt collection (15 percent), credit card (7 percent), checking or savings (6 percent), and mortgage complaints (5 percent).

Nearly 40 percent of complaints filed by servicemembers with the CFPB concern debt collection--as compared to only 26 percent by non- servicemembers.

This pandemic has been among the most disruptive long-term events we will see in our lifetimes, and it is not surprising that the shockwaves it sent across the planet were felt deeply in the consumer financial marketplace.

Our servicemen and servicewomen make extraordinary sacrifices on our behalf, and they should not be forced to confront aggressive and manipulative debt collectors who capitalize on the strains required of them in the course of their duties.

It is critical for the United States Congress to stand with the women and men who have served our country and remove the unethical methods debt collectors use to prey upon our servicemembers.

Madam Speaker, I urge my colleagues to join me in supporting H.R. 1491, and address these abusive debt collection practices; the patriots serving our country deserve no less.

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